020 7898 0500The pound enjoyed a remarkable end to the week on Friday as it surged to its highest levels against the dollar since the Brexit vote. The question really is can the run continue and, if so, what levels could sterling reach? We have recently been reviewing the major banks’ forecasts for the next 1, 3, 6 and 12 months and it is fair to say that opinion is divided on which direction GBP/USD will move. We’ll be sending an email tomorrow so you can see for yourselves.
Sterling also climbed higher against the euro. Reports that Spain and the Netherlands were open to a soft Brexit encouraged the City and they piled into the pound. It will be fascinating to see how the negotiations unfold over the next few months. Negotiations over future trade relations between the UK and EU could cause significant volatility. Watch this space.
Ironically enough, Friday was very quiet on the economic data front and today is pretty similar. The week kicks off properly tomorrow with the release of the inflation data. It is expected to drop from 3.1% to 3% which would be welcome news for the Bank of England. Any lower than 3% would be even better. Let’s see.
